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F i m a C o r p o r at i o n B e r h a d ( 2 1 1 8 5 - P ) •
A n n u a l R e p o r t 2 0 1 8
Plantation Division recorded revenue of RM138.10 million for
the year ended 31 March 2018, an improvement of 3.7% from
RM133.21 million recorded in the previous year. This follows
the increase in the Group’s fresh fruit bunch (“FFB”) production
to 175,774 metric tonnes (“MT”) compared to 131,484 MT
harvested last year due to better Group yield per mature hectare
of 25.2 MT (FYE2017: 20.5 MT) which compensated for the
decline in the average selling price (CIF, net of duty) realised for
CPO during the year of RM2,342 per MT compared to RM2,625
per MT last year. The decline in prices was due largely to the
significant increase in global crop production as average palm
yields recovers from the effects of El Nino.
PBT was registered at RM41.07 million on the back of higher
CPO and CPKO sales volumes compared to previous year’s
loss of RM0.55 million due to recognition of impairment losses
on property, plant and machinery and biological assets in
the Group’s Indonesian subsidiary, PT Nunukan Jaya Lestari
(“PTNJL”). Without the impairment losses, the Division’s PBT
last year would be RM28.82 million.
plantation division
FFB produced by PTNJL improved 33.4% to 175,425 MT
(FYE2017: 131,484 MT). Meanwhile, FFB purchased from third
parties increased to 60,460 MT from 51,853 MT in the previous
year. On the back of higher FFB production, FFB production
cost declined y-o-y from RM359.56 per MT to RM294.31
per MT and volume of FFB processed improved 28.1% from
183,328 MT to 234,929 MT. Processing costs were also lower
at RM28.53 per MT from RM34.90 per MT last year in line with
the higher volume of FFB processed.
CPO and CPKO production for the year was 51,887 MT
(FYE2017: 41,619 MT) and 4,013 MT (FYE2017: 3,419 MT)
respectively. The average oil extraction rate (OER) of 22.1% is
lower than last year’s rate of 22.7% mainly due to lower crop
quality from smallholders and higher rainfall of approximately
4,033.10 mm, the highest in 5 years, which led to excessive
moisture in the fruit bunches.
ESTATE DEVELOPMENT
During the year under review, the Division spent RM8.51
million on CAPEX, largely towards plantation development
works, purchase/replacements of fixed assets as well as the
construction of new worker’s quarters. As at 31 March 2018,
our housing complexes can accommodate 1,376 workers as
a means to address ongoing labour shortages. We are also
upgrading the IT systems for our Malaysian estates, with
the initial roll-out at Ladang Cendana, which would provide
the Group’s head office with better visibility and control of
operations at various sites.
INDONESIA
PTNJL
As highlighted earlier by the Chairman in his statement, PTNJL
is allowed to continue to operate its plantation operations until
the final determination of the status of its land by the Mahkamah
Agung PTNJL’s planted area affected by the Ministerial Order
measures approximately 3,692 hectares. It is pleasing to note
that to-date, there is no disruption to PTNJL’s operations and
therefore there is no immediate operational or financial impact
on PTNJL. We attribute this to the strong relationship that
PTNJL has cultivated and continue to have at the grassroots
level through PTNJL’s economic and social contributions to the
local community over the years.
Should the outcome of the court’s decision result in a final
adverse judgment, we do not anticipate that it will have further
material impact on the Group’s balance sheet moving forward
as we have recognised a gross impairment loss of RM44.74
million on property, plant and equipment and biological assets
in last year’s result of which, as shareholders may recall,
RM29.37 million and RM11.52 million (net of tax) respectively,
Average CPO Price Realised (RM)
Group ffb Production (MT)
FYE2014
FYE2015
FYE2016
FYE2017
FYE2018
2,068
2,207
2,064
2,625
2,342
◄
175,774
►
131,484
FYE2017 FYE2018
▲
33.7%
Indonesia
- 175,425 MT
Malaysia
- 349 MT